Standard Trade Model

The Internet has allowed for increased trade in services sch as programming and technical support, a development that has lowered the prices of such services relative to manufactured goods. India in particular has been recently viewed as an exporter of technology-based services, an area in which the United States had been a major exporter. Using manufacturing and services as tradable goods, create a standard trade model for the US and Indian economies that shows how relative price declines in exportable services that lead to the "outsourcing" of services can reduce welfare in the United States and increase welfare in India.

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//Before scripting about the 'Standard Trade Model' at International level, it is essential to know about the export traded in India, as well as, the United States. One should know about the manufacturing trades of these two Countries, which further will assist in analyzing trends in an effective manner. //

The Internet has allowed for increased trade in services such as programming and technical support, a development that has lowered the prices of such services relative to manufactured goods. India in particular has been recently viewed as an exporter of technology-based services, an area in which the United States had been a major exporter. Using manufacturing and services as tradable goods, create a standard trade model for the US and Indian economies that shows how relative ...